8 Feb 2021
Purchasing Manager Index (PMI)
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
The Purchasing Managers Index (PMI) is a measure of the prevailing direction of economic trends in manufacturing through its monthly survey of supply chain managers across 19 industries, covering both upstream and downstream activity.
When the PMI falls it indicates that manufacturers are scaling down production because they are expecting reduced sales which can indicate slower economic growth.
However the opposite is the case when it is rising and it certainly has risen back above 50 from the collapse in 2020 which means that World GDP is expected to rise in 2021.
This is positive news for economic growth.
Click for chart.
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